Whitestone Multiplex Cinemas site sold for $75 million

A partnership between an up-and-coming real estate investment firm and an established lender and investor is in contract to buy the former site of Whitestone Multiplex Cinemas for around $75 million.

Innovo Property Group, a firm founded two years ago by former Carlyle Group executive Andrew Chung, and Square Mile Capital are purchasing the 20-acre site at 2505 Bruckner Blvd. from Extell Development.

An investment sales team from Cushman & Wakefield led by Adam Spies, Doug Harmon, Adam Doneger and Josh King arranged the sale. The group is in the process of sourcing about $56 million of debt to finance the purchase, according to marketing material released by Cushman to potential lenders.

The cinema has been shuttered since 2013, so recent owners have run a commercial parking facility out of the 360,000-square-foot lot. Innovo plans to close on the acquisition by the end of the month, then raze the movie theater to try to maximize revenue from the parking business. Increasing the size of the lot to 630,000 square feet will boost parking revenue to about $6 million, according to Innovo's projections—enough to reap a 6% return on its investment.

Longer-term plans could include developing up to 740,000 square feet of industrial space to lease to e-commerce companies for last-mile deliveries. The property sits at the juncture of the Cross Bronx Expressway, the Bruckner Expressway and the Hutchinson River Parkway—major highways that provide access to much of the city.

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